Microsoft Corp. is in the process of issuing $1.15 billion in senior convertible notes due in 2013. The company will use the debt proceeds to pay off some short-term obligations. The software company currently has $2.25 billion in commercial paper outstanding and plans to repay a portion of that debt. The move will fix the interest rate and make the company less subject to the market fluctuations that it currently experiences with commercial paper. Part of the move is because the commercial paper market has not functioned properly and has in the recent past frozen or seized up. The notes are convertible to a fixed number of common shares and may be converted if stock prices rebound. However, the move does reduce the risk associated with needing to refinance or roll short-term obligations when markets may not be functioning properly. 

1. What is the conversion value of a bond that is convertible into 25 shares of common stock that is currently selling for $42.35? 

A. $42.35 

B. $1,000.00 

C. $1,058.75 

D. not enough information to tell